Exhibitors Herald (Dec 1924-Mar 1925)

Published every Wednesday by Exhibitors Herald Co. Editorial and Executive Offices: 407 S. Dearborn St.. Chicago, U. S. A. (Tel. Harrison 9248-9249) New York Office Los Angeles Office 1476 Broadway (Tel. Bryant 6111-1368) 5528 Santa Monica Blvd. (Hollywood 8620) James Beecroft, Manager Harry Hammond Beall, Manager All Editorial and Business Correspondence Should Be Addressed to Chicago Office. Edwin S. Clifford, Managing Editor George Clifford, Business Manager William R. Weaver, Exhibitor Editor Jay M. Shreck, News Editor J. Ray Murray, New Pictures Editor John S. Spargo, New York ^itor Other Publications : “The Box Office Record,” published semiannually, and "Better Theatres,” published monthly as a supplement to Exhibitors Herald, Subscription Price: United States and Its Possessions, $3.00 a year; Canada, $4.60 a year; other parts of world, $6.00 a year. Single copy, 2S cents. Member, Audit Bureau of Circulations. Copyright, 1926, by Exhibitors Herald Co. Vol. XX February 7, 1925 No. 7 After many years of desultory diseussion and negotiation the idea of centralized distribution for motion pictures becomes a practical potentiality with the formation last week of the Railway Express Film Transport Company, Inc. We view the progress that this represents, backed as it is with a personnel of commanding authority, as a movement of very great importance; so great, in fact, that it may be the means toward bringing about a tremendous change in the course of the industry. The idea itself of centralized distribution for motion pictures is both old and well-known in the industry. It has been repeatedly advanced as an ideal solution of many distribution problems arising out of the present multiplicity and duplication of exchanges. For a long time it has represented an idea for reform and development which has been almost universally subscribed to in principle but which, for many reasons, has failed to receive concrete support and development. The company just announced appears to be, in effect, a subsidiary of the American Railway Express Company. It is the particular project of Mr. Walter W. Irwin, formerly identified in executive capacities with Vitagraph and the Famous PlayersLasky corporation. The chairman of the board is Mr. R. E. M. Cowie who is president of the express comipany. The treasurer is Mr. John W. Newlean who is vice-president and treasurer of the express company. Mr. Irwin is president. The sotmdness of the idea of centralized distribution and the many great advantages which it doubtless would bring to the industry need not again be dwelt upon in these columns because we have repeatedly Express Co. Plan for Distributing Motion Pictures discussed these questions at great length. Centralized distribution, under proper auspices, is the one great and radical adjustment in the conduct of the industry which offers the greatest hope for both immediate gain and future progress. A system of centralized distribution, properly conducted, would render certainly equally as good if not better service in the physical handling of films. Every practical distributor admits that it would cut down the present excessive and wholly unproductive costs. And, in addition, it would bring to the industry, and to its various component producing companies, benefits of almost immeasurable value in the form of the elimination of the fixed weekly cost of maintenance of exchanges. The proposed system will accomplish more than could be accomplished in any other way under existing circumstances in the matter of maintaining free and open competition and in preserving the industry as a field for independent operation. Complete details of the plan are published elsewhere in this issue. Reference to them will disclose just what is contemplated. It might appear to the casual reader that in view of the benefits of the proposed system, and in view of the widespread approval which the proposition in principle has received, that very little stands in the way of it speedily becoming an operating reality on a big scale. That, however, is not the true status of the matter. There are good grounds for the belief that the proposition will encounter many severe knocks and its immediate success is by no means assured. « « » The small group of distributing companies which are now in a commanding position in the industry will probably assume the position that the saving in distribution costs which the proposed system would make for them would be offset, if not materially out-weighed, by the saci’ifice of tactical advantages which they would be compelled to make. Further, these companies are not disposed to further a system, to which practically any company might be admitted, which would be the means of sustaining in business many smaller companies that are now tottering on the brink of dissolution. As the situation now stands these smaUer companies may not be looked upon by the larger ones, as amounting to any real competition, but, at the same time, they do absorb play dates here and there and consequently more or less cut into the possible gross revenue of the larger companies. We voice no indictment of the larger companies because of this attitude. It is simply the usual disposition of successful companies in any field when they are in a position to command, or practically command, the situation. In addition, these organizations look upon their investments and their years of experience in upbuilding their companies, and feel that these impose upon them the obligation and the right to stand out against any system which would give a lesser qualified company an opportunity to enjoy the benefits which they now enjoy. {Continued on page 28)